Companies’ use of avoidance schemes plummets

Just 330 businesses told HMRC they were using corporation tax planning schemes in 2016-17 down 42% from 2015-16 and 88% from a peak of 2 860 four years ago according to figures obtained from UHY Hacker Young.

The firm says the statistics show that a series of government crackdowns in recent years have almost eradicated aggressive corporation tax planning.

Partner Clive Gawthorpe said: ‘The corporation tax planning scheme is now virtually dead – HMRC can claim to have won the war on aggressive tax planning by businesses. Once-commonplace schemes like employee benefit trusts have almost completely died out with only a small number remaining. Many of those businesses are likely to be in the process of settling or litigating with HMRC over them.’

The Revenue’s recent powers to tackle tax avoidance include accelerated payment notices new criminal penalties for enablers of tax avoidance and the general...